CBSE Class 11 Business Studies Forms Of Business Organisation Worksheet Set B

Mcq Questions for Ncert Class 11 Business Studies Forms of Business Organisation

Question. ……….. defines the rules regarding internal management of a company.
(a) Articles of association
(b) Partnership deed
(c) Memorandum of association
(d) Certificate of incorporation

Answer : A

Question. …………….. clause contains the name of the company with which the company will be known, which has already been approved by the registrar of companies.
(a) Name
(b) Registered office
(c) Objects
(d) Liability

Answer : A

Question. Application for approval of name of a company is to be made to
(a) SEBI
(b) Registrar of companies
(c) GOI
(d) State government in which company is registered

Answer : B

Question. Name the type of partner who is not really a partner but is liable to third parties for the repayment of the firm’s debts.
(a) Sleeping
(b) Active
(c) Nominal
(d) Secret

Answer : C

Question. Name the process by which the shares of a company are allowed to be traded on a stock exchange.
(a) Trading on shares
(b) Listing of shares
(c) Mutualisation of shares
(d) None of the above

Answer : B

Question. After doing her M.Com. from ‘Himachal Pradesh University of Shimla’, Aparna went back to her village in Kinnaur district of Himachal Pradesh. She wanted to contribute for the development of women of her village, so she formed an organisation, the membership of which was open for all the women villagers on a voluntary basis by paying ₹ 500 only which will be treated as their capital.
Aparna knew that the land of her village was suitable for the farming of medicinal plants. So she motivated the members of her organisation for growing medicinal plants in their fields under the guidance and help of the local agricultural department.
It was also decided that the organisation will purchase the produce of each member and sell the same to drug manufacturing companies at a very good price which was not possible for the members individually. The main objective of the organisation is to render services to its members rather than to earn profit.
A computer training center for young boys and girls of the village was started under the guidance of Aparna from the surplus of the profits.
On the basis of the given information, identify the kind of organisation that was formed by her.
(a) Cooperative society
(b) Company
(c) HUF
(d) Partnership

Answer : A

Question. The person or group of persons who perform the work of promotion and form a company is/are known as promoter(s).
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. Match the following.

Codes
      A     B    C      D 
(a) (i)   (iii)  (ii)   (iv)
(b) (iii)  (ii)  (i)    (iv)
(c)  (i)   (ii)  (iii)   (iv)
(d) (ii)  (iii)  (iv)   (i)

Answer : D

Question. A company cannot come into existence without
(a) electing directors
(b) getting certificate of incorporation
(c) issuing a prospectus
(d) All of the above

Answer : B

Question. ‘Return of allotment’, signed by a director or secretary is filed with the registrar companies within how many days of allotment of shares?
(a) 15 days
(b) 8 days
(c) 10 days
(d) 30days

Answer : D

Question. In a cooperative society, which of the following principle is followed?
(a) One share one vote
(b) One man one vote
(c) No vote
(d) Multiple votes

Answer : B

Question. A partner by………….is a person who though is not a partner in a firm but knowingly allows himself/herself to be represented as a partner in a firm.
(a) active partner
(b) sleeping or dormant partner
(c) secret partner
(d) partner by holding out

Answer : D

Question. …………… clause specifies the maximum capital which the company will be authorised to raise through the issue of shares.
(a) Name
(b) Capital
(c) Objects
(d) Liability

Answer : B

Question. A type of business organisation where a person is individually responsible for capital, bearing risk and control of management is called …… .
(a) Joint stock company
(b) Cooperative society
(c) Sole proprietorship
(d) Partnership

Answer : C

Question. The ………… is a conclusive evidence of the regularity of the incorporation of a company.
(a) articles of association
(b) partnership deed
(c) memorandum of association
(d) certificate of incorporation

Answer : D

Question. Members may come and members may go, but the company continues to exist. Identity the feature of company highlighted here.
(a) Perpetual succession
(b) Formation
(c) Separate legal entity
(d) Artificial person

Answer : A

Question. Match the following forms the business organisation with their suitable example.

Codes
      A    B   C    D 
(a) (i)  (ii) (iii) (iv)
(b) (ii) (iv) (iii) (i)
(c) (iv) (iii) (ii) (i)
(d) (ii) (iii) (iv) (i)

Answer : B

Question. It can continue as long as the partners want and is terminated when any partner gives a notice of withdrawal from partnership to the firm.
(a) Partnership at will
(b) Particular partnership
(c) General partnership
(d) Limited partnership

Answer : A

Question. Samarth Sharma was born in Delhi and is a fashion designer. He runs his hi-fashion garments business from the posh Greater Kailash market of Delhi. After running the business for eight years, Samarth feels that he should get his business registered in a way that he can save himself from the threat of unlimited liability.
But at the same time, he doesn’t want anyone else to be a part of decision-making or to interfere in his business. On the basis of the given information, state the form of business organisation to be formed by Samarth. 
(a) Partnership
(b) Public company
(c) Private company
(d) One person company

Answer : D

Question. A public company publishes and files its annual accounts and reports, as it helps company to maintain secrecy.
(a) True
(b) False
(c) Can’t say
(d) Partially false

Answer : B

Assertion-Reasoning MCQs :

Question. Assertion (A) Personal assets of the partners may be used to pay-off business debts in case of insufficiency of business assets.
Reason (R) Partners of a firm have unlimited liability.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : A

Question. Assertion (A) Board of directors exercise direct control over the business.
Reason (R) Board of directors are the owners of the company.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : C

Question. Assertion (A) The managing committee elected by members of the cooperative society is generally not professionally equipped to handle the management functions effectively.
Reason (R) Cooperative society is unable to employ experts because of their inability to pay them high salaries.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : A

Question. Assertion (A) Timely decisions of sole proprietor help him/her to take advantage of market opportunities as and when they arise.
Reason (R) Sole proprietorship can be easily started or dissolved at any time with minimum legal formalities.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : B

Question. Assertion (A) Credit cooperative societies are established for providing easy credit on reasonable terms to the members.
Reason (R) Credit cooperative societies provide loans to members out of the amounts collected as capital and deposits from the members and charge low rates of interest.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : A

Short /Long Answer type Questions :

Question: ABC Ltd. filed an application for registration to registrar of companies. He submitted copy of name approval, memorandum of association, articles of association, address of registered office and paid the required registration fees. His application for registration was rejected on the ground of not submitted some others important documents. List the documents he needs to file so that he can get his company incorporated. 
Answer : (a) Statement of authorised capital.
(b) Consent of proposed directiors.
(c) Statutory declaration.
(d) The agreement, if any, with proposed Managing Director or Whole time Director or Manager.

Question: Distinguish between preliminary contracts and provisional contracts. 
Answer :

Question: A group of 15 people decides to form a company and hence appointed Creators Pvt. Ltd. Creators Pvt. Ltd. were assigned the job of scanning the business environment and to identify various business opportunities. After thoroughly exploring the environment, Creators Pvt. Ltd. suggested them to start a ‘Cab Services’ in the posh areas of Delhi. Before converting the business opportunities into real project, Creators Pvt. Ltd., conducted feasibility studies and also suggested the name for the company. They have entered into contract on behalf of the company also.
(a) Identify the stage in the formation of a particular form of business organisation.
(b) Under what category is Creators Pvt. Ltd. is working.
(c) Are the contracts which are entered into before incorporation, of above mentioned form of organisation, are binding after incorporation? 
Answer : (a) Promotion.
(b) Creators Pvt. Ltd. is working as promoters.
(c) Yes.

Question: Is it necessary for a public company to get its shares listed on a stock exchange? What happens if a public company going for a public issue fails to apply to a stock exchange for permission to deal in its securities or fails to get such permission. 
Answer : Yes, it is necessary for a public company to get its shares listed or quoted on a stock exchange. If a company going for a public issue fails to apply to a stock exchange for permission to deal in its securities or fails to gets such permission within 10 weeks from the date of closure of subscription list, then the allotment will become void Consequently, all money received from the applicants will have to be returned to them within 8 days.

Question: Name the following:
(a) A company having at least 7 members.
(b) An enterprise owned by a single person.
(c) A company in which the number of members cannot exceed 200.
(d) Its main aim is to provide services to the members.
(e) This form of business organisation is owned, financed, managed and controlled by a single person.
(f) A document containing terms and conditions of partnership.
Answer : (a) Public company. (b) Sole proprietorship. (c) Private company.
(d) Cooperative society. (e) Sole proprietorship. (f) Partnership deed.